Despite the economic crisis, document destruction companies nationwide predict increased revenue growth for 2009 but many expect to see their margins decline or remain flat from the previous year, according to a recently released survey of the industry.

The survey, conducted in March by Shotgun Capital Advisors, a merger and acquisition advisory firm based in Southlake, Texas, was sent to 1,142 independently owned document destruction firms. A total of 242 surveys were returned, a 21 percent participation rate. It was the second year Shotgun Capital conducted the survey and it was conducted as the industry coped with “challenging times,” said Jim McGuire, president of Shotgun Capital.

“What’s surprising about it compared to last year is how fast the industry continues to grow despite the economic climate and the free-fall in paper prices as of last October,” he said. “It still is experiencing double-digit growth.”McGuire said the industry was proving to be recession resistant in difficult economic times.In the introduction to the survey findings, McGuire noted that “the rapid collapse of paper prices, paralyzed credit markets and a focus on cost reductions are testing our industry's ‘recession resistance’ all at once.” The online Document Destruction Industry Benchmark Study consisted of 55 questions dealing with such topics as marketing, sales, customer satisfaction and financial performance.

Growing competition and pricing pressure — notably price-cutting by new entrants to the industry — topped industry concerns for 2009, the survey reported. “Most respondents pointed first to increasing competition and pricing pressures,” it noted. “Over and over again respondents identify ‘low-balling’ by new competitors as the biggest issue facing the industry. Concerns about paper prices ranked second, followed by general concerns about the recession.”

Most popular related searches

Related articles

There are two main types of waste fabric waste:
(1) the factory in the leather fabric processing and production of leather fabric can not be 100% of the use, so in the production of some by-products or waste, such as tailoring and sewing clothes when the extra cloth, cloth and other waste , As well as in the synthesis of chemical fiber in the process of excess waste and so on.
(2) people on the high demand for clothing at the same time will also have a high out, so life in the waste clothing, shoes, hats and so...

Secure document shreddingDocument shredding is an important economic mainstay for the workshops for disabled persons at Lammetal Werkstätten GmbH. Now the company can continue to expand this service area with a “social commitment” thanks to two high performance shredders from HSM in Frickingen at Lake Constance / Germany.The Lammetal workshops could be regarded as a medium-sized company, but with one special feature: 450 people work here with physical or mental disabilities or multiple disabilities...

Waste produced in hospitals is a type of waste considered special or dangerous, as the material is composed of different elements: biological and anatomical components, single use items deriving from surgical treatment, material used by healthcare personnel such as shirts, caps and masks, bandages, medicines used by patients, single-use glass and plastic containers used for extracting and storing human elements and slightly radioactive waste.
SatrindTech, with thirty years` experience in proposing applicative...

When disposing of digital data media, it is advisable to take care, as untold amounts of confidential data are stored on our computers, USB sticks, CDs and DVDs etc. and represent a security risk, above all for trading companies. But what happens to these storage media at the end of their life? The Federal Office for Data Security makes an unequivocal recommendation that the rule for hard disks should be „dismantle and destroy physically“.Freeware for downloading at no cost from the Internet, magnetic...

On the outskirts of Nashville, there’s a plant that’s making the most out of printing waste. Combined Resources is a paper recycler that encourages companies to “save money while reducing their carbon footprint.” For this reason, it makes a lot of sense that they own a WEIMA shredder.When you enter the plant, you’ll immediately see an enormous, red WEIMA WLK 18 Jumbo. This machine is used to shred paper materials including books, roll stock, slab waste, signatures/skeleton waste,...

Customer comments

No comments were found for Shredding Industry Sees Bright Future. Be the first to comment!

Add your comment

Great! comment successfully added!

Contact

Your message:

Your email

Your first name

Your last name

I would like to receive periodic email updates and special offers from select suppliers.